Having difficulty getting a loan?

Can’t get a credit card?

Frustrated?

Having bad credit can have numerous implications on your life. Not to mention the emotional turmoil it causes.

Thankfully, there are several things that you can start doing today. It’s important to get your credit back on track.

Here are 10 easy steps towards repairing your credit:

1. Identify the Scope of the Problem

Before you can begin to fix your bad credit you need to fully understand where and what the issues are. Have you overextended yourself with various financial products? Do you have too many credit cards and are not able to keep up with the payments? Is there a collections issue? A late payment issue?

Sometimes the problem may not actually be as big as you think. It is the fear of the unknown that may be getting the best of you. So better to start with getting the facts straight.

To begin write out what you know. We’ll move on to information gathering later and it will be interesting to see if there are any incongruencies in your perception of the problem.

On a piece of paper list out all of your debts. Beside each one write the interest rate and the last payment you made (if you can remember it). Now add up the total. Seeing it on paper will make it real. It is important to detach emotion and just look at it as a job that needs to be fixed.

2. Get Your Credit Reports

“It’s funny how many people resist this step, but you want to know what’s going on with your credit,” says Weston. She recommends going a step further and getting a credit score, too. That way, you get a better idea of what you need to do to improve.

Check one of your credit reports for free at AnnualCreditReport.com; check your credit score for about $20 at MyFICO.com.

First and foremost, if you see any errors, get them corrected since even the smallest mistake, such as a creditor reporting a late payment that you actually paid on time, could bring down your score.

via: 5 steps to repairing bad credit

3. Make a Plan

The first thing you should do when trying to improve your credit is develop an effective plan and make a commitment to adhere to it.

You must be committed to making real changes in the way you spend money. Pay cash for things, and cut out unnecessary expenses. Before you open your wallet ask the questions “do I need this?” and “can I afford this?” If the answer is no to either, put it back on the shelf. via Easy Way On How You Could Fix Your Credit | SKABA

4. Get a Secured Credit Card

If you want to repair your credit but do not qualify for a regular credit card, consider a secured credit card. When you open a secured credit card account, you place money on deposit to cover any charges you may make. This ensures in advance that you will have enough money to pay for your debt. Responsible use of a credit card can help rebuild your credit. via Easy Way On How You Could Fix Your Credit | SKABA

A secured card requires you to put a deposit down as collateral and gives you a small credit line to work with — usually a few hundred dollars. Hopper says you’ll want to start budgeting to put money aside for your secured card deposit, while taking the time to research your options. “A lot of secured products carry fees and high-interest rates. When you’re rebuilding your credit, you should try to do so as affordably as possible, and there are many options available to consumers,” he says. via: 5 steps to repairing bad credit

[wpsocialboost]

5. Stop Using Your Credit Cards

One of the most difficult things is to stop using your credit cards, but you must. Quite often credit cards feel like they are an emotional safety net, when in fact they are the main source of the problem.

Why not just cut them up and cancel them? Because cancelled credit cards will show negatively on your credit report. So you don’t want to close them, but you also don’t want to use them. Once you have your finances on track then charge a small item a few times a year just to show that you are still using them. Then pay it off right away. This will help your credit score.

Most credit cards, especially store specific ones, can have very high interest rates and the more you have the more out of control the payments can become.

Use only the secured credit card and if absolutely needed then get a pre-paid MasterCard. Both of these options will force you to only use the amount of money that is available.

6. Repay Your Debts

Whenever possible it is always best to try to repay your debts as quickly as possible. Take a look at your debts and more specifically the interest rates. Start repayment from the highest interest credit card or loan and work your way down.

7. Contact Your Creditors

Contact your creditors directly and see if you can make payment arrangements. It is always better to be paying your debts versus entering into a consolidation or bankruptcy as both of these will contribute to your credit score negatively. However, there are times when consolidation or bankruptcy is the right choice. It is important that you know the facts.

8. Consolidate Your Debts

Investigate whether it is possible for you to take on one consolidation loan by rolling all your debts into the one loan. If you are able to do this, it may be possible to more rapidly repay your debts. via: The 5 Steps to Repairing Your Bad Credit Rating

9. Pay Your Bills on Time

Your payment history has the greatest impact on your credit score. Thus, financial wisdom dictates that your payments are on time.  This applies to all of your bills, not just loans.  Your non-loan bills have the greatest and most immediate impact on your credit score.  However, non-payment of rent, gym memberships and medical bills can also be reported.  These bills can be turned over to collections and if they are, your credit score will take a hit.  Keeping all of your payments current will have a positive impact on your credit score. via: 5 Steps to Better Credit

10. Make a Commitment To Yourself

Repairing bad credit can be overwhelming and extremely frustrating. It requires a commitment to change and for most people change is hard.

Put your commitment in writing. Tell a friend or family member what you are doing and ask them for support.

You Can Do This

Right now it may feel like more of a mountain than a molehill. But small steps each month will begin to have positive implications on your credit rating.

Remember it is more about consistency over time, rather than some kind of quick fix.

Start today. Start small. Start with the changes listed here. Resources and help is all around you the only thing you have to do is take action.